A Case Study on the Impact of MBA Education: Data Journalism
In evaluating MBA programs, prospective students face two critical questions: "How quickly can I rise in my career?" and "What are my chances of reaching a senior leadership position?" Using data from CareerDNA’s Post-Graduate Rankings 2024, which examines both career velocity and probability of seniority, alongside the Financial Times (FT) MBA rankings, we provide a comparative analysis of how these programs impact career outcomes.
This article highlights the methodologies and results of both rankings, showcasing how CareerDNA’s outcomes-based approach complements the FT’s focus on broader metrics like salary growth and international mobility.
Comparison of Top MBA Programs: CareerDNA vs. Financial Times
Below is a comparison of the CareerDNA 2024 Rankings and the FT MBA Rankings 2024, focusing on the top 10 schools by their impact on career success and speed.
Methodology Comparison: CareerDNA vs. FT
CareerDNA Approach
- Success Percentage: Measures the proportion of alumni who achieve divisional leadership roles or higher.
- Career Velocity: Tracks the speed (in months) it takes for alumni to progress through key seniority levels, offering insight into how quickly MBAs impact career advancement.
- Data Source: Empirical data from 1.9M professionals across diverse industries, using objective metrics to provide an outcomes-based ranking.
Financial Times Methodology
- Weighted Salary Increase: Alumni-reported salary growth three years post-graduation, adjusted for sector and geography.
- International Mobility: Tracks alumni movement across countries post-graduation.
- Career Progression: Combines qualitative alumni feedback with quantitative analysis of roles achieved.
- Alumni Satisfaction: Factors in subjective measures, such as overall program experience and value for money.
Note: the scores above are descending, rather than ascending. In this chart, the higher the score, the better the result. The chart is interactive.
Key Findings and Observations
1. Career Velocity vs. Success Percentage
CareerDNA reveals a trade-off between career velocity (speed of advancement) and the probability of achieving seniority. These were two of the three main criteria for MBA graduates as they entered the schools - salary was considered to be a result of success, rather than being the primary driver for the study. While these are easily tracked in the career data of the alumni, the FT relies on anecdotal evidence given by biased survey respondents, i.e. they have potentially exposed themselves to overfitting.
For example:
- Harvard Business School ranks highest in the probability of getting to divisional leadership, but sits behind 61 other established business schools for the time it takes to reach this level. CareerDNA ranks them
- INSEAD, known for its one-year MBA program, excels in success probability (at 34% it is the only school along side Harvard to beat the 1/3 ratio), but it also trails behind 40+ other smaller schools for the speed to achieve this goal.
2. Regional Bias
FT rankings tend to favor programs in the U.S., where salary growth is often higher due to regional economic factors. CareerDNA, however, provides a more balanced global perspective by focusing solely on outcomes, which elevates the UK much more for its specialised MBAs:
- London Business School: Consistently strong in both rankings due to its proximity to London, making it very easy for networking and branding.
- Cass Business School: Renowned for its marketing leadership.
- Warwick Business School: Well reputed in the UK for its success in delivering strong finance-minded executives.
All three above, along with Henley Business School, sit within easy commute of London and Europe, and several have healthy international relations through sponsors or programs.
3. Contrasts in Alumni Outcomes
The FT methodology highlights salary growth as a key factor, which often benefits U.S.-based schools. CareerDNA, on the other hand, uncovers nuanced patterns:
- Schools like MIT Sloan and Yale emphasize innovation and entrepreneurship, resulting in moderate success percentages but faster career velocity.
- Hult International Business School focuses on global mobility but has a lower success percentage (26%).
Applying These Insights To Data-First Journalism
Consider the two main stakeholders of this reporting: the aspiring MBA students and the business schools. Neither is well-served by a short-term approach (salary-weighting) focussed on primarily alumni input without verification. Business schools have complained about the FT's "black box" approach which consistently uses regional coefficients to change the salaries, and therefore they are detached from the success of the FT report, other than in PR terms. The fact that these rankings are famous cause the deans to use them in KPIs or strategic reports, compounding the systemic issues underlying poor performance.
Applicants, however, are also being missold based on overfitted data and a lack of transparency. Alumni will always promote their own schools' results in the FT rankings, because it justifies a decision they have already made.
Notes:
- Several of the authors of this piece are INSEAD alumni. The school falls from second best to seventh place, hopefully confirming the impartiality of the insights.
- The reports have been shared with all of the schools, and many have replied favourably to confirm these data. There is no commercial gain for CareerDNA in this exercise.
- For journalists or researchers wanting access to our data, please feel free to contact us.
